Thursday, January 26, 2017

Earlier this
month, Accenture Strategy published a report entitled “Smart Cities: How
5G Can Help Municipalities Become Vibrant Smart Cities.” The next
generation of wireless network infrastructure will employ 5G technology, which will
feature the dense placement of small cells to deliver speeds 10 times faster
than 4G. When 5G technology is deployed, cities will be able to enjoy smarter
and more efficient use of local government services such as energy, utilities,
transportation, and public safety.

5G wireless
technology is anticipated to produce very large economic and social benefits in
the United States. The Accenture report projects that 5G will create $275
billion in investment, 3 million jobs, and $500 billion in gross domestic
product. In addition, the capabilities enabled by 5G technology will allow
cities to save millions of dollars. For example, smart lighting automatically will
dim public street lights when no pedestrians or vehicles are present. Public
transportation will be able to reduce wait times by optimizing bus and train
schedules with commuter smartphones. Vehicle-to-vehicle communications will minimize
congestion and lead cars through hazardous road conditions.

When it comes to
public safety, deployment of 5G networks in smart cities will save lives. High-speed
video surveillance will allow first responders to assess crime scenes and
dangerous situations before arriving. Real-time monitoring of gunshots will
provide the police with exact locations and timelines. Sensors with 5G
technology will warn local residents about possible emergencies, such as
tornadoes, flooding, or security threats.

Importantly, 5G
networks will impact positively cities of all sizes. The report estimates that
5G’s impact on the city of Saratog, CA, with a population of 29,900, will be
300 additional jobs and $50 million in additional economic activity. The use of
5G in the city of Beaumont, TX, with a population of 118,000, will create 1,000
new jobs and $180 million in additional economic activity. The use of 5G in the
metropolitan area of Chicago, IL, with a population of 9,472,000, will create
90,000 new jobs and $14 billion in additional economic activity.

Another report
published earlier this month by Deloitte, entitled “Wireless
Connectivity Fuels Industry Growth and Innovation in Energy, Health, Public
Safety, and Transportation,” contains similar findings on the economic and
social benefits of 5G wireless technology. This report says that smart cities collectively
could create $1.8 trillion in additional revenue to the U.S. economy. With
regard to public safety, the Deloitte report finds that a one-minute reduction
in response time translates to an 8% reduction in mortality. It also says that
self-driving cars could reduce emissions by 40-90%, travel times by 40%, and
delays by 20%. Whether the economic impact of 5G technology is $500 billion or
$1.8 trillion, it is clear that deployment of 5G will make cities safer, healthier,
and contribute significantly to the U.S. economy.

However, there are
some existing regulatory barriers and practices that stand in the way of
realizing these significant benefits. Some municipalities take 18 to 24 months
to approve small-cell implementations. Also, because providers must deploy many
densely-placed small cells for networks to operate smoothly, the practice of municipalities
charging a fee for each individual cell placement will discourage deployment. Reducing
these barriers, by allowing the use of public rights of way, eliminating or
minimizing fees, and streamlining approval processes, will increase the rate of
5G deployment and help unlock smart cities.

5G technology is
the future of mobile wireless broadband. And the future is now. Without
unnecessary delay, the FCC, along with state and local governments, should take
affirmative actions that encourage 5G deployment and, at the same time,
eliminate, or at least reduce, restrictions and fees that hinder 5G deployment.